I thought in today's post I would bring things back to a practical level. Now that I have #madeit (Just kidding) I want to show people how they can start their own investing journeys with minimal effort. See investing as a beginner shouldn't have to be that difficult. Something I found difficult was to find practical, actionable advice. Today I will be giving you just that!
For the long-time readers of the blog, you would recall in last week's post I mentioned I would make my investing workbook FREE (Valued at $50). I am keeping true to my word, so keep reading to find out how you can get the course at absolutely no cost.
If I can leave you with a single idea today, it will be to get educated. See as far as investing tips for beginners go, this is the most important one. Unfortunately, most people and even most professional investors lose money in the stock market year on year.
That's right even the 'smart' people lose money year on year. That is why I am so passionate about this point. See the reason why it is so important is that with the right education and belief, you will inevitably see your money go down. What you do then is really what matters. I love what Warren Buffet says regarding this.
You never know who's swimming naked until the tide goes out
How would you get educated Milan? Glad you asked. The very first step would be to ensure the way you look at money is correct. Money should not be seen as the end goal, but rather a means to an end. What do I mean by that? See money will be the primary tool that helps us achieve our real goal, which is time. Time should be the goal NOT money. You can make more money but you can't make more time. Time is the one thing that is nonrefundable.
Once you understand this, things will become quite clear. You will realise that slaving away for 40 years to only realise that you might not have enough for retirement can't be the goal. You have to be deliberate in your approach to investing. You need to do your own research, because the truth about investing and how to invest wisely is hidden behind quite a few layers of speculation and 'the next hot stock tip'
If you would like to read about my findings and what I've discovered while doing research on investing, continue reading to see how to join our super cozy campfire newsletter.
Like most things in life, you have to just get started. Getting started back in the day used to be quite the process. You would have to register a broker account with a bank and at least in NZ, every investment you made would cost you anywhere from $15 - $30... Thank goodness we're past all that and these days you can literally sign up in less than 10 minutes. Plus with Sharesies, you pay zero monthly fees!
Now that you are fully equipped and ready to go, you should select an easy-to-use platform that can help. Let's review a few popular ones depending on where you live.
Sharesies is the preferred platform for many Kiwis including myself. To be honest I've been with them in their early days. The software and platform have undergone quite a few major changes in the last couple of years. They've added in the ability to invest in NZ-based stocks, the US stock market, and now the Australian stock market. They previously only allowed people to invest in ETFs.
Their mantra is to be a platform that allows anyone to invest. Whether it be $5 or $5000.
- Zero monthly fees. (Recently announced)
- Easily access multiple stock exchanges (NZ,AUS, US)
- Ease of use as a software only platform
- Low trasnsaction fees.
- 0.5% for $1000 - $3000
- 0.1% for $3000+
As I mentioned previously, Sharesies is the platform that I personally use and I would recommend it if you are based in New Zealand. Other platforms to check out. Hatch & Stake
Now lets talk about a US based option that has been making waves in all spheres of the internet. #gamestoptothemoon.
Robinhood, similar to Sharesies is a software-first-based platform that allows most people an easily affordable way to invest. If I was in the US of A, I would imagine that this is the platform I would use. Robinhood, similarly to Sharesies aims to have a platform that caters to anyone who is keen to invest.
- Zero monthly fees
- Allows for options trading
- Ease of use as a software only platform
Whether you are a beginner at investing, or you are a master, you need a good platform to start your journey. I would just be very wary of the hype and wild roller-coaster type things that come from the media and other outlets like r/Wallstreetbets. More on how to stay the course below.
I've always found a great deal of joy in being able to assist people with their personal finance. I've found once someone opens themselves up to the idea of investing and financial independence, there is a new glimmer of hope in their eyes. So with these investing tips for beginners (or masters), I am actually quite selfish. I am selfish because I get to help someone. I might be able to help set someone free or at least get them started on their journey.
Get rich you say Milan, how? Well its quite easy. Start a pyramid scheme of course. Scam old people out of their hard work pensions. I am kidding of course. Now there are quite a few ways to make money or get rich. Some of the popular ways are, starting a business, flipping houses, microloans, cryptocurrency mining. I will be focusing on what we as a family have chosen as our primary vehicle. Investing in the stock market. We've also sold our house recently that we flipped.
Now, much like weight loss, everyone has an opinion about investing. However you are on my blog so hopefully, you care enough about my opinion to listen to what I have to say. Are you ready for my advice? Get ready... Alright.
Invest in a broad-based Index fund and don't stop until you have enough money to support yourself passively.
There you have it. Simple but effective. This is what we are doing and I would love to share our current portfolio with you, so be sure to sign up for Campfire down below.
Stay The Course
Most people don't make it. There are a number of reasons for that, however, let's instead focus on why it is important to stay the course. Staying the course will unlock your life. What do I mean by this? You are no longer dependent on an income. Instead, you can do something meaningful. Even if you enjoy your current role and you feel it is adding value to people's lives, how would you feel about it in 10 years' time?
Having enough money to cover your day-to-day expenses and then having your time free to me is a very noble pursuit. To give you an example, I have to sacrifice precious moments with my 6-month-old daughter because I am unable to be there with her every day. Instead, I am at work. I actually enjoy my job, however, if I had to choose, I will choose time with my daughter every time.
This is why it is worth staying the course. You are able to choose. Most people will never have that option. That is why I am so passionate about FIRE. It unlocks your life to do what brings you and other people joy.
I really hope that these investing tips for beginners (or masters) are valuable. If you want some more in-depth information, why not consider signing up for our bi-weekly newsletter Campfire down below.
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All the best